On Thursday, US stock futures remained stable as investors digested the latest consumer price index report while anticipating producer inflation figures. Futures contracts based on the three major indices ranged from flat to positive. In extended trading, Disney, Groupon, and Sonos all fell after reporting disappointing quarterly results, while Beyond Meat, Robinhood, and Unity Software rose after reporting better-than-expected earnings.

The Dow fell 0.09% in regular trade on Wednesday, while the S&P 500 and Nasdaq Composite gained 0.45% and 1.04%, respectively. Seven of the eleven S&P sectors finished higher, with communication services and technology leading the way, while oil and financials lagged. According to the most recent CPI report, headline inflation in the United States unexpectedly decreased last month, reinforcing predictions that the Federal Reserve will raise interest rates.

As it continues to battle double-digit inflation, the Bank of England is likely to raise the bank rate by 25 basis points to 4.5% in May 2023, marking the twelfth consecutive rate increase and driving borrowing costs to new highs not seen since 2008. In March, annual inflation in the United Kingdom was 10.1%, five times more than the central bank’s target of 2%. Investors will be watching the central bank’s future plans closely to see if policymakers intend to boost rates further or pause the tightening cycle soon. Furthermore, the Bank of England will provide its quarterly economic estimates, with most investors expecting an upward revision for GDP and inflation in 2023.

The yield on the 10-year US Treasury note decreased to 3.42% after the inflation report revealed a surprising drop in headline inflation in April, while annual core inflation crept lower as expected. The report bolstered the case for the Fed to suspend the tightening cycle next month and increased the chances of a rate drop later this year. Meanwhile, investors are assessing the stability of ailing regional lenders as well as the debt ceiling standoff after recent negotiations between President Joe Biden and congressional Republicans yielded little headway.

In choppy activity on Thursday, the Shanghai Composite dipped 0.29% to close at 3,310, while the Shenzhen Component rose 0.02% to 11,143, as investors responded to data indicating China’s consumer price index grew 0.1% year on year in April, the slowest rate since early 2021. Producer prices fell 3.6% in April, the steepest drop in nearly three years.

According to the findings, greater fiscal and monetary assistance may be required to boost the country’s economic recovery. On Thursday, mainland equities traded mixed, with advances from heavyweight companies such as Contemporary Amperex (3.3%), BYD Company (1.6%), and Kunlun Tech (0.3%). Meanwhile, iFLYTEK (-4.3%), Dawning Information (-8.1%), and CNPC Capital (-10%) all suffered significant losses.

According to data from the China Association of Automobile Manufacturers (CAAM), vehicle sales in China increased 82.7% year on year to 2.16 million in April 2023, up from 9.7% the previous month due to a low base comparison from April last year when the country was under a covid shutdown. New energy vehicle sales increased by 110%. Total car sales increased 7.1% in the first four months of the year, while new energy vehicle sales increased 42.8%.

Gold prices remained above $2,030 per ounce on Thursday, and have been positive so far this week, as the latest CPI report revealed that headline inflation in the United States unexpectedly dropped last month, bolstering speculations that the Federal Reserve will suspend interest rate hikes in June.

In April, the annual inflation rate in the United States was 4.9%, confounding forecasts of no change and dipping below 5% for the first time in two years. Money markets presently price in a 95% chance of a pause next month, with a 5% chance of another quarter-point rate hike. The metals also found support from uncertainties surrounding the US debt ceiling, as President Joe Biden piled pressure on Republican lawmakers on Wednesday to raise the $31.4 trillion debt limit